How To Withdraw Money From ATM: Step-by-Step Process (2024)

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Need to withdraw money from ATM? When it comes to the easiest way to withdraw cash, a small cabin with a machine inside it, called an Automated Teller Machine (ATM), can be the best solution.

The respective banks where we have our bank accounts provide us with an ATM cum debit card to withdraw cash easily from ATM.

What is an ATM?

An Automated Teller Machine is an electronic banking machine that allows a bank account holder to perform basic money transactions, like withdrawing cash, without any other human presence.

Apart from withdrawing cash, ATMs have begun to offer a plethora of useful services like –

1. Open or withdraw a fixed deposit;
2. Apply for loans;
3. Pay insurance premium;
4. Pay utility bills;
5. Deposit checks and cash, etc.

Apart from these services, depending on the location and bank, each ATM offers a combination of various services apart from the basic withdrawal of cash.

While an ATM has become a familiar term, the usage of this machine is still a confusing task for many, especially in rural areas, where financial inclusion is still a new concept.

In this article, we have explained the basics of an ATM, followed by the simple procedure of how to withdraw money from an ATM so that one can be well aware of the withdrawal process.

Types of ATMs

All ATMs are mainly of two types – on-site and off-site.

On-site ATMs are those which are available inside a bank’s compound, whereas an off-site ATM is located in other places, without the presence of a bank branch.

Other than this, ATMs are differentiated on the basis of their origin and purpose. These include –

1. White Label ATMs:

These are set up and operated by Non-Banking Financial Companies (NBFCs) and offer the most popular ATM services.

2. Yellow Label ATMs:

These ATMs are provided to assist people with e-commerce transactions.

3. Brown Label ATMs:

These ATMs are not directly owned by a financial institution but are leased to provide ATM facilities in various places.

4. Orange Label ATMs:

These ATMs are used for all transactions related to the trading of shares.

5. Pink Label ATMs:

These ATMs are made for use by women only.

6. Green Label ATMs:

These ATMs facilitate all transactions related to agriculture.

What is the structure of an ATM Machine?

The ATM machine drawing below depicts the essential components that comprise the basic structure of an ATM machine.

1. Display screen – This atm screen guides the transaction of the user by visually showing them the functions of the machine and helping them perform the task they need to.
2. Card Reader – This is an input device that identifies your bank account on the basis of the card you feed into the reader.
3. Cash Dispenser – This is the output device from where you can acquire the cash you have withdrawn through the machine.
4. Receipt Printer – This is the point from where you will get the receipt of your transaction after it is complete.
5. Keypad – This is an input device that guides you through your transaction. Whatever you input through the keypad will be reflected on the display screen.

How to withdraw money from ATM?

Let us now look at the steps to withdraw money from an ATM.

Step 1: Insert ATM Card:

Insert your ATM Card in the ATM machine in the slot as marked in the above diagram.

Step 2: Select Language

Select your language from the language options appearing on the display screen (shown in the diagram above).

Step 3: Enter 4-Digit ATM Pin:

Use the Keypad(as marked in the diagram) to enter your 4-digit ATM PIN number.

Do not ever share your ATM PIN with anyone. Ensure that nobody is watching you while you enter the PIN.

Be careful while entering the Pin, as a wrong PIN may lead to the blockage of the ATM card.

Step 4: Select the type of Transaction:

On the ATM screen, you will be able to see different types of transaction options such as Deposit, Transfer, Withdrawal of Money, etc.

For cash withdrawal, you will have to select the Withdrawal Option.

Step 5: Select the Type of Account:

After selecting thecash withdrawaloption, the screen will display different account types, select your account type.

As an individual banker, you should be choosing a savings account, as current accounts are a special type of accounts used by businesses.

Some ATMs offer you a choice to add a line of credit to your account. This can help a banker when they need excessive money in an emergency.

Step 6: Enter the withdrawal amount

Now, enter your withdrawal amount.

Make sure that you do not enter a withdrawal amount more than the balance in your account.

Now press enter.

Step 7: Collect the Cash:

Now collect the cash from the lower slot of the machine (as shown in the picture above).

Step 8: Take a printed receipt , if needed:

After you collect the cash, you will get an option of whatever you want a printed receipt of the transaction. If you want a printed receipt, click yes and close the transaction.

Step 9: Another Transaction:

If you want to undertake another transaction, then select that option.

Withdrawals from an ATM card debit amount from any existing bank account (either savings or current), so when you wish to withdraw, ensure that you have sufficient balance in the account.

How to withdraw cash from UPI ATM?

The opening of India’s first UPI ATM in Mumbai on September 5th marked a momentous milestone in the field of safe cardless cash withdrawals. The Unified Payments Interface (UPI), a digital platform run by the National Payments Corporation of India (NPCI), makes this cutting-edge technology possible. In contrast to conventional ATMs that necessitate tangible debit cards or in-person visits, the UPI ATM expedites and enhances the convenience of cash withdrawal procedures.

The UPI-ATM uses QR codes for cash transactions, which is a novel and secure method compared to numerous banks that allow cardless cash withdrawals through cellphone numbers and OTPs.

Withdrawal limits at an ATM

The cash withdrawal limit is different for all banks across India. However for maximum banks the daily limit starts from ₹10,000 and goes upto ₹50,000. Banks impose ATM withdrawal limits mainly for security reasons and to keep track of the movement of cash. As per the regulations from the RBI, with effect from 1st January 2022, users can withdraw cash from ATM five times per month. If someone exceeds the withdrawal limit they have pay some additional charges per withdrawal. But, One can increase their ATM withdrawal limit by contacting their bank.

Safety precautions when withdrawing money from an ATM

Nowadays, the fraud is increasing day by day in the ATMs. It’s best to follow some safety measures to avoid any issue.

These are few steps for a seamless transaction:

Stay alert: A very basic requirement while accessing an ATM is to stay alert at all times. Check for a CCTV; try to use an ATM that has one – or at least one that has a security guard outside.

Keep your PIN a secret: Your PIN is the most valuable security measure when you access your account through an ATM, so make sure you keep it a secret. Choose the right location: Using a secured ATM is essential for your safety. Always use an ATM that is on a busy street or in a secure building.

Don’t ask strangers for help: You may wish to seek help from strangers if you happen to get stuck while using an ATM. While this may be okay in an emergency, never disclose your PIN or get them to transact on your behalf.

Ask your bank for assistance: Go to your bank for help if you face any issues while using their ATM. They will suggest a way out. Also use this feature if you ever lose your card, or if it gets stolen.

Check the ATM carefully: Inspect the machine carefully, the keypad and card slot – before you enter your PIN.

Conclusion: While these machines are very convenient, a little caution on our part will make the transactions safer.

Step-by-Step Guide on How to Withdraw Cash From ATM Using UPI

1. Click “UPI Cardless Cash” from the screen of the ATM:
   This option appears on the screen when you get closer to a UPI ATM. To begin the cardless withdrawal process, select it.
2. Select the Amount: After that, you’ll be asked to choose or enter the desired withdrawal amount. Carefully choose or enter the desired quantity.
3. Scan the QR Code: Now, pull out your smartphone and open the UPI app. Scan the QR code that appears on the ATM screen using the app. All the information needed to safely execute your purchase is contained in this QR code.
4. Confirm with UPI PIN: Your UPI app will prompt you to confirm the transaction after you’ve scanned the QR code. To validate the UPI ATM withdrawal, enter your PIN.
5. Collect the Cash: The UPI ATM will distribute the desired cash as soon as your transaction is validated. All you need to do is make sure you gather it!

Bottomline

When ATMs first came to India, people used to call them All Time Money or Any Time Money, and that is the biggest advantage of these machines. One is no longer restricted to the bank’s working hours to do basic transactions like drawing cash or checking bank balances, etc.

The second biggest benefit is nowadays, you can withdraw cash from any bank’s ATM and need not be restricted to your specific bank’s ATM.

After reading this article, I hope you are confident about how to withdraw money from ATMs and that your next visit will be hassle-free. Ensure safe withdrawal and do remember to count your money and take the card out of the slot before leaving the ATM.

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Frequently Asked Questions (FAQs)

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